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The Herald Scotland
08-07-2025
- Business
- The Herald Scotland
Scotland 'needs long-term action' to solve housing emergency
Last month's Spending Review saw the Chancellor announce a £39billion settlement for housing in England over the next 10 years. And closer to home, we saw housing put at the heart of the Scottish Government with an outright Cabinet Secretary position for the first time in the history of devolution. And whilst this recognition is welcome, particularly for a sector which has for years gone into most fiscal or policy announcements bracing itself for challenges, it must be followed by long-term action. Not least because, while housing associations and co-operatives are not for profit and have a social purpose, they are still businesses, with all the needs for predictability and certainty every business has. They operate on 30-year business models with their only income coming from rents. This not only funds management and maintenance, but also the vital wraparound services which support tenants to stay in their homes, whether that's energy advice, help with employment or signposting to health provision. In the last two Scottish Budgets we've seen the grant funding available for social housing first cut by £196million for 2024-2025 and then reversed by an uplift of £212m for 2025-2026. While this is welcome, few businesses can experience such unpredictability and volatility without consequences, let alone social purpose businesses tasked with putting a roof over people's heads. Building homes is a lengthy process which requires time, planning and significant upfront investment. It's not something which can be scaled up overnight in response to changing budgets or be planned most efficiently and effectively with annual budgets. And it's crucial we remember why building social homes matters. Last year the Scottish Government declared a national housing emergency amid record homelessness and around 250,000 people on social housing waiting lists. We cannot end an emergency with short-termism. What we need to see is consensus across the political spectrum recognising our social homes as critical infrastructure. A warm, secure, affordable home for everyone being as important to the country as transport, energy networks, the health system and policing. The Scottish Government has an opportunity following the Spending Review to provide our housing associations with a multi-year funding settlement to get Scotland building and achieve the goal of a warm, secure, affordable home for the thousands who need one. At the Scottish Federation of Housing Associations (SFHA) Annual Conference in Glasgow last month, the First Minister indicated his willingness to look at a long-term funding package if a similar announcement was made in England. Given the Chancellor's announcement of £39bn for housing in England over 10 years, SFHA expects the Scottish Government to use consequentials from the Barnett Formula to introduce an increased long-term settlement here in Scotland. The importance of this government grant to housing associations cannot be overstated. Most importantly, it keeps rent levels truly affordable. Rents for social homes typically average half the amount of the private rented sector, and research shows that 20,000 children are kept out of poverty by living in a social home rather than a private rented home. In the last parliament, the government grant in Scotland was £3.5bn and housing associations more than doubled this through private borrowing to £7.3bn. As well as keeping rents affordable, government investment gives private finance lenders strong confidence in the sector. It is a delicate balancing act. In Scotland the government grant is still around 50%, but any changes to the ratio– as seen in England where grant has been as low as 15% in recent years – risks pushing rents up and adversely affecting private lending confidence. An important piece of this puzzle is Mid-Market Rent (MMR): a form of affordable rented housing which offers rents below market rates and is generally used by younger individuals and couples. The Scottish Government's Housing Bill, which is currently going through parliament, has proposed including these MMR homes in plans for private sector rent controls, something providers say would make development of these homes unviable. The last thing the housing sector needs is anymore uncertainty, so it's incumbent on the Scottish Government to exempt MMR from rent controls and give the sector stability. We need a housing system which is a level playing field, offering choice between social homes, the private rented sector and home ownership according to the different needs people have at different times in their lives. There is room for all, but one-size does not fit all. Choice according to need is vital if we are to achieve a re-balanced and mature housing system which delivers from generation to generation, according to need and aspiration, reinvesting the money in more homes. One which housing is seen as national infrastructure, providing a service and is not a commodity accessible to some but denied to many others. Housing is fundamental to so many of the defining challenges of our time and policymakers must recognise it as critical infrastructure and the bedrock to all our lives it so evidently is. That must begin with a long-term funding plan. Sally Thomas is the Chief Executive of the Scottish Federation of Housing Associations (SFHA) who represent Scotland's housing associations and co-operatives
STV News
03-07-2025
- Politics
- STV News
‘Radical change' necessary to meet housing needs of ageing nation, report warns
'Radical change' is needed as too many of Scotland's homes fail to meet the needs of an ageing population, a report has warned. The Scottish Federation of Housing Associations (SFHA) has called on MSPs to create a national strategy for housing the elderly and people with disabilities. In its Homes Fit For The Future report, it points out that 70% of the country's housing stock was built before 1982, with many unfit for the needs of Scotland's ageing population. It said within 20 years, more than a quarter of Scotland's population will be aged 65 or over, whilst those under 16 are projected to make up just over half that amount (13.3%). The SFHA has raised concerns about the impact unsuitable housing already has on disabled and older people and has warned the situation will get worse as the country ages. It said this will have severe consequences for the NHS and social care. Despite looming pressures, it said the Scottish Government's accessible housing working group has not met since 2021. As well as calling for a national accessible housing strategy, SFHA has said newbuild homes across all forms of housing should be built to a common design standard, ensuring they are accessible for elderly and disabled people. The report has called on MSPs to ensure grants for social housing allow investment in technology such as digital applications, which can allow people to live independently, prevent injuries, and reduce hospital admissions. Other types of technology include fall-detection sensors and voice-enabled companions. SFHA policy manager Susie Fitton, who wrote the report, said: 'The devastating impact of Scotland's housing emergency is well documented. 'We desperately need more homes being built, but we need to be strategic about the design of these homes to ensure they will serve the needs of people as they age. 'Most of our current housing stock was designed for a previous century and we must update our approach. 'Across Scotland there are around 78,000 people we currently know need an adaptation to live independently in their home. The real number is likely to be higher and it will only climb as our population gets older. 'We want to see a national accessible housing strategy. Policymakers must ensure that the funding and systems in place for delivering adaptations are significantly improved to meet the need.' Ms Fitton said a common design standard would ensure homes are made accessible from the day they are built, which she said is the best way to ensure they are fit for the future. She added: 'Meeting the needs of our ageing population will require radical and innovative solutions, which includes embracing technological change. 'Given technology can allow people to live independently and prevent injuries and hospital admissions, then policymakers must ensure social housing grant levels are enough to invest in such preventative technology from the outset when building new homes.' The Scottish Government has been approached for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
STV News
12-06-2025
- Politics
- STV News
Scottish housing crisis is making people suicidal, industry warns
A housing industry leader has said the Scottish housing crisis is causing people to have suicidal thoughts. Susie Fitton from the Scottish Federation of Housing Associations (SFHA) told MSPs on Thursday that social landlords speak to people 'expressing suicidal thoughts about their housing issues' on a regular basis. The SFHA policy manager told MSPs on Holyrood's social justice and social security committee that over one in ten staff, on a daily or weekly basis, had spoken to applicants expressing suicidal thoughts about their housing issues.q Ms Fitton added: 'This really is the side of the housing emergency that doesn't really get talked about very often.' She said the issue had been raised at the SFHA annual conference earlier this week when 'somebody said 'we need registered social landlords in Scotland to stop people from feeling like they need to kill themselves because of their housing situation''. She also told the committee that demand for social housing – provided by councils and housing associations – is 'obviously outstripping supply in many areas'. MSPs took evidence on the housing crisis on Thursday morning as at least 12 councils have already declared local housing emergencies. The first was declared by Argyll and Bute Council in June 2023. Edinburgh, Glasgow, Fife and West Dunbartonshire Councils followed suit. The Scottish Government formally declared a national housing emergency on May 15, 2024. Nationally, 17,424 households were classed as either being homeless or threatened with homelessness between April 1 and September 30 last year. As of September 30, there were a record 16,634 households living in temporary accommodation – which included 10,360 children. Tony Cain, from the Association of Local Authority Chief Housing Officers (ALACHO), told MSPs: 'It doesn't matter where you are in Scotland, there is a shortage of social rented homes, it is as simple as that. 'There are more people looking for a social rented home than there are homes available each year to meet their needs.' While he stressed the importance of 'plotting a way out of the housing emergency', he also said there is a need to ensure 'those who are caught up in it are safe'. Noting 242 people who had been in contact with services to help the homeless had died in 2022-23, he insisted not enough resources are being put into supporting vulnerable households. Mr Cain said: 'The right support at the right moment makes a big difference and we are simply not putting enough resources into support services to understand people's needs, the risks that they face and to keep them safe. 'So as well as finding a way out, safely managing services to people who are caught in it is critical. 'We need to be offering more support to vulnerable households and we aren't resourced to do that at the moment.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
